Net assets: Net assets = Owners’ equity = Assets – Liabilities. It consists of two parts, one part is the capital invested when the enterprise was founded, including the premium part, and the other part is the assets created by the enterprise during its operations, including the assets received from donations. Net capital: Net capital = net assets - risk adjustment for financial product investment - risk adjustment for receivable items - risk adjustment for other current asset items - risk adjustment for long-term assets - risk adjustment for contingent liabilities +/- as determined by the China Securities Regulatory Commission or Other approved adjustment items. The net capital indicator reflects the highly liquid part of net assets and indicates the amount of funds that a securities company can realize to meet payment needs and cope with risks. In layman's terms, net capital is the amount after assuming that all liabilities of a securities company mature at the same time and all existing assets are realized to pay off all liabilities.